MUMBAI: Indian shares provisionally rose more than 1 percent on Tuesday after the central bank cut the repo rates by a bigger-than-expected 50 basis points in a bid to spur growth in the economy.
Rate-sensitive stocks were amongst the gainers, though investors expressed caution about the scope of future easing after the Reserve Bank of India also expressed concerns about inflation.
State Bank of India rose 1.8 percent and Larsen & Toubro rose 2.5 percent
The 30-share BSE index provisionally ended up 1.3 percent at 17,370.33, while the 50-share NSE index rose 1.2 percent to 5,289.70.